How can you tell whether the market volatility of the S&P500 has changed?

Question

Question

business finance

Answer 1

Answer #1

We can measure the change in market volatility of S&P 500 using VIX or Volatility Index.

Volatility Index

Created by Chicago Board Options Exchange , it is a real time market index that measures volatility. it derives the price inputs from the S&P 500 index options.
Volatility can be measured by statistical computation using measures such as variance, standard deviation. Another method is to measure volatility by inferring value from option prices.
VIX represents the market's expectation of 30 days future volatility of S&P 500.

Answer 2

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